Apple TV could help kill traditional TV ads

Apple Store“It has already revolutionized the music business with its iPod device and iTunes music store,” Paul R. La Monica writes for CNNMoney. “Now will Apple help kill the television’s industry historic reliance on the 30-second TV commercial to help pay the bills?”

“Apple is expected to begin shipping its new Apple TV device sometime this week. The product, in theory, should make advertisers nervous since it will allow consumers to easily transmit TV shows purchased on iTunes (which do not include commercials) from the iTunes library on their computer to their TV set for viewing there,” La Monica writes.

La Monica reports, “‘There’s no question that one of the problems with the traditional 30-second TV ad is digital video recorders. The whole market is under threat from TiVo-like functions. And it’s going to get easier to avoid commercials with Apple TV,’ said Tim Wilson, a general partner with Partech International, a venture capital firm that is looking to invest more heavily in online video and other forms of new media.”

“Advertisements during TV shows, long considered a nuisance by many consumers, are no longer required viewing. ‘The role of advertising is shifting. It’s about giving consumers control of what they want. Apple TV and other devices are clearly doing that,’ said Mike DiFranza, the chief executive officer of Captivate Network, a company owned by newspaper publisher Gannett (Charts) that runs ads on digital screens placed in elevators in office buildings,” La Monica reports.

Full article here.

[Thanks to MacDailyNews Reader “Nathan” for the heads up.]

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46 Comments

  1. LOL… the death of TV ads?!?! I very much doubt it… There will always be some form of TV advertising, whether it’s a interactive hybrid of what you see today or sponsorship. I can’t see people buying the Today Show or their local weather from iTunes.

    Slightly off topic, but I think one Jobs needs to do though is give people the option to rent movies. People rent way more movies than they buy, at least imho. If you had what would amount to a Netflix On Demand THAT would be a killer app and a half.

  2. You’re already seeing new types of advertising already. Advertising bars at the bottom of television screens are becoming more and more prevalent. As a personal view I find them more irritating than ad breaks because they take up your precious screen space.

    In this country we suffer from programing delays (where overseas series are delayed for months) and many viewers have got to the point where they won’t put up with high-handed approach. Increasingly Australian viewers are downloading T.V. shows from torrent sites. Likewise when you get stations jerking viewers around with scheduling times the free-to-air networks are in for a long overdue payback.

    However, as an individual viewer, I already have free-to-air stations, cable television and the last thing I’d do is pay for a T.V. show especially since I’m already paying for cable. I’m not saying that Apple TV won’t be successful I’m merely pointing out that many consumers won’t pay for television shows when they can illegally download from torrent sites for free, watch cable broadcasts AND if they wish, record digital programs from digitital television onto their computers (if they have the hardware) and then burn them onto dvds to watch on their televisions.

  3. True to a point. Hopefully it will at least kill off bad spots. IMHO some of the best content on TV is in fact the commercials and not always the show thay are inserted in.
    This is one of the arguments for Sat radio. “No commericials!” That is in fact one of the reasons I will not subscribe to a Sat radio service. I listen to a radio station here in WNY broadcast out of Toronto Canada. CHUM FM. Absolutely terrific radio…. one of the best part of the station is the commericials. Most are very good some are brilliant, hiliarous even dangerous since they grab your attention if you are driving. Really good stuff! In fact I heard an Apple radio spot there the other day. It was not just an audio track from a TV spot either…..It was very good! Only heard it once.

    So if Apple could raise the bar for the quality of the commericals I have to watch to subsidize the cost of the “free” content….so be it!

    TR

  4. Since when has buying content guaranteed that there is no advertising on it ?

    I used to buy VHS tapes and now DVDs and they have adverts for other movies on them. They irritate the hell out of me, particularly as they are seldom for movies that I would buy and they can’t easily be skipped.

    I would happily pay a fair price for an on-line movie with no advertising, but I have no doubt that whatever I pay, the greedy cretins at the studios will be adding additional advertising onto that content.

  5. Advertisers will always find a way to push their stuff in our faces. In some European cities (Copenhagen, for example), corporate logos are plastered on the sides of office buildings. Here in DC we’re starting to see ads painted on the sides of our previously clean subway cars, and Target has posted a series of ads on the insides of the tunnels that flash strobe-like as we pass by. On some DVDs I’ve purchased one often can’t skip past the “previews” of other movies. One is tempted to say, “Oh, boo hoo” to video producers who complain they have no way to push their ads when we’ve already *paid* for the privilege of *not* seeing their ads.

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